PRESS RELEASE
CIT delivers 70% growth in distributable income to
S$12.6 million year-on-year
Highlights:
•
1Q2008 annualised distribution per unit (“DPU”) of 6.387 cents is 15.2% higher than
the forecast of 5.542 cents
•
Net Property Income of S$15.6 million reflects a 66.0% increase year-on-year
•
Additional $100m medium term debt facility obtained
•
Base interest rates fixed at 2.58% for 5.5 years
•
Two investment properties valued at S$21.9 million were acquired bringing total
investment properties under management to S$956.4 million as at 31 March 2008
•
Option Agreements with a total asset value of S$18.0 million have been signed and
announced to date. MOUs for S$75.2 million worth of properties were entered into as
at 24 April 2008
Page 2 of 7
1Q2008
(1 January to 31 March 2008)
Statement of total return
Increase /
Actual
Forecast (1)
Gross Revenue
S$17.6 mil
S$17.4 mil
+ 1.1%
Net Property Income (NPI)
S$15.6 mil
S$15.0 mil
+ 4.0%
Distributable Income
S$12.6 mil
S$11.0 mil
+ 14.5%
Distribution Per Unit (DPU)
Annualised Distribution Per
Unit
Annualised
1.588 cents
(2)
6.387 cents
(3)
5.542 cents
(4)
(Decrease) %
+ 15.2%
Distribution
Yield based on:
2007
Placement
Price
(S$0.70)
Current Price (S$0.615)
(5)
9.12%
10.39%
(4)
7.92%
9.01%
Note:
(1) Forecast means prorated forecast figures derived from the Projection Year 2008 (from 1 Jan to 31 Dec
2007) based on the portfolio of 40 investment properties as disclosed in the Offer Information Statement
(“OIS”) dated 1 Oct 2007, for the quarter ended 31 Mar 2008.
(2)
Computation of the actual DPU of 1.588 cents is based on 795,255,329 applicable units (inclusive of
1,247,468 units to be issued for Manager’s management fee) as at 31 March 2008.
(3) Computation of the actual annualised DPU of 6.387 cents is based on the simple annualisation of the
actual DPU of 1.588 cents for 1Q2008.
(4) Forecast annualised DPU of 5.542 cents was based on the weighted average number of applicable units
of 796,916,400 (based on the actual issue price of S$0.70 per unit) as disclosed in the OIS dated 1 Oct
2007.
(5) Computation based on closing price of S$0.615 as at 31 March 2008.
Page 3 of 7
1Q2008
(1 January to 31 March 2008)
Statement of total return
Actual
Actual
Increase /
(1Q2008)
(1Q2007)
(Decrease) %
Gross Revenue
S$17.6 mil
S$11.0 mil
+ 60.0%
Net Property Income (NPI)
S$15.6 mil
S$ 9.4 mil
+ 66.0%
Distributable Income
S$12.6 mil
S$ 7.4 mil
+ 70.3%
Distribution Per Unit (DPU)
Annualised Distribution Per
Unit
Annualised
1.588 cents
1.434 cents
(1)
6.387 cents
5.816 cents
(2)
9.12%
8.31%
10.39%
9.46%
+ 9.8%
Distribution
Yield based on:
2007
Placement
Price
(S$0.70)
Current Price (S$0.615)
(4)
(3)
Note:
1.
Computation of the actual DPU of 1.434 cents is based on 513,833,517 applicable units (inclusive of
839,740 units to be issued for Manager’s management fee) as at 31 March 2007.
2.
Computation of the actual annualised DPU of 5.816 cents is based on the simple annualisation of the
3.
Computation of annualized DPU based on the actual issue price of S$0.70 per unit from the 2007
actual DPU of 1.434 cents for 1Q2007.
placement.
4.
Computation based on closing price of S$0.615 as at 31 March 2008.
Page 4 of 7
Singapore, 25 April 2008 – Cambridge Industrial Trust Management Ltd. (“CITM”), the
Manager (“the Manager”) of Cambridge Industrial Trust (“CIT”), is pleased to announce a
distribution of 1.588 cents per unit for the quarter 1 January 2008 to 31 March 2008.
Mr Ang Poh Seong, CEO of the Manager said “We are pleased to start off 2008 with a
solid set of results. DPU continued to grow compared to the previous quarter. Our Net
Property Income for 1Q2008 grew 66.0% to S$15.6 million year-on-year, and our
annualised DPU of 6.387 cents is a 15.2% increase from the Forecast DPU for the same
period. We will continue to build upon this set of good results.”
Stable and Secure Yield
CIT’s total net distributable income for the quarter was S$12.6 million with an annualised
DPU of 6.387 cents. This represents an annualised yield of 10.39% based on the closing
price of S$0.615 per unit on 31 March 2008. All the properties are signed with long leases
ranging from 5 to 15 years, with fixed rental escalation. The weighted average remaining
lease term of CIT’s existing portfolio of 42 properties remained stable at 6.5 years as at 31
March 2008.
Property Portfolio
As at 31 March 2008, CIT has a portfolio of 42 properties with 649,969 sq m of lettable
area valued at S$956.4 million. The weighted average land lease on these properties is
40.0 years, excluding a freehold property which comprises 5.5% of total lettable area.
Approximately 35.2% of the portfolio of properties is in the logistics and warehousing
sector, with the next significant segment in the light industrial space accounting for 34.8%;
the remaining properties are represented across a well-diversified spectrum of tenant uses
such as car showrooms, self-storage facilities as well as industrial and warehousing.
Full Occupancy Backed by Strong Demand
The overall occupancy of CIT’s portfolio of 42 properties remained at 100% as at 31 March
2008. 35.2% of CIT’s property portfolio is in the high-growth logistics and warehousing
Page 5 of 7
sector, and 34.8% is in the light industrial space for which demand remains strong. The
Manager believes that the demand for quasi-offices will spill into the demand for light
industrial space resulting from the current rental pressure on prime office space in the
Central Business District.
Acquisitions
CIT has signed and announced Option Agreements valued at S$18.0 million as at 24 April
2008. Legal completion for the acquisition of these properties is expected to be in 2008. In
addition, Memoranda of Understanding (“MOU”) were signed for the acquisition of
properties with an aggregate value of S$75.2 million as at 24 April 2008.
Capital Management
CIT continues to place prudent capital management at the centre of its business strategy.
CIT’s gearing at 31 March 2008 was 36.9%, an increase of 1.8% during the quarter. CIT’s
long term leverage target is 45%; the manager does not intend to pursue acquisitions
which would take leverage above this target without immediate visibility on further equity.
CIT currently has S$131 million in committed loan facilities available to fund property
acquisitions, including S$78 million remaining of a S$100 million, 2 year revolving credit
facility executed in January 2008. While equity markets remain depressed, CIT intends to
moderate its pace of growth and pursue acquisitions on a highly selective basis.
On 1 February 2008 CIT entered an interest rate swap agreement fixing the base rate on
all its existing borrowings at 2.58% p.a. for 5.5 years, delivering an all-in cost of borrowing
of 3.32%. This interest rate swap was executed at a rate near a historical low for
Singapore Dollar interest rates.
CIT is in the process of negotiating a refinancing of its existing short term debt facilities.
The Manager expects to implement this refinancing via a syndicated loan or capital
Page 6 of 7
markets issuance as market conditions allow. The manager is targeting the third quarter of
2008 for completion of this refinancing.
Outlook
Arising from recent volatility in the global financial markets and uncertainties surrounding
the global economy, Singapore’s economic growth is expected to moderate but remain
healthy.
Despite uncertainties in the local economy, the fundamentals supporting the industrial
property sector remain stable. Therefore, the Manager believes that the general outlook
for the Singapore industrial market in 2008 remains positive. CITM is committed to
exercise prudent capital management in pursuing its growth strategy.
----- The End -----
Important Notice
The value of units in CIT (“Units”) and the income derived from them may fall as well as rise. Units
are not obligations of, deposits in, or guaranteed by, the Manager or RBC Dexia Trust Services
Singapore Limited (in its capacity as trustee of CIT), or any of their respective affiliates. An
investment in Units is subject to investment risks, including the possible loss of the principal amount
invested. Investors have no right to request that the Manager redeem or purchase their Units while
the Units are listed. It is intended that holders of Units (“Unitholders”) may only deal in their Units
through trading on Singapore Exchange Securities Trading Limited (the “SGX-ST”). Listing of the
Units on the SGX-ST does not guarantee a liquid market for the Units.
This release may contain forward-looking statements that involve assumptions, risks and
uncertainties. Actual future performance, outcomes and results may differ materially from those
expressed in forward-looking statements as a result of a number of risks, uncertainties and
assumptions. You are cautioned not to place undue reliance on these forward-looking statements,
which are based on the current view of management on future events.
Page 7 of 7
For enquiries, please contact:
Tay Chiew Sheng
Manager, Investor Relations
Cambridge Industrial Trust Management Limited
Tel: (65) 6827 9330
HP: (65) 9876 7587
Email:
[email protected]